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SEB January – June 2015 Press Conference
Annika Falkengren President & CEO
Repricing of risk
Swedish credit spreads 5y covered bonds vs. 5y Sovereign
Stock exchanges MSCI World and OMXSPI, Indexed to 100 2007
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40
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80
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120
140
160
2007
2008
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2010
2011
2012
2013
2014
2015
OMXSPI MSCI World
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20
40
60
80
100
120
140
160
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200
2007
2008
2008
2009
2010
2011
2012
2013
2014
2015
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Highlights Q2 2015
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High customer activity
Continued strong asset quality and improved performance
Strengthened resilience in uncertain markets
Profit & Loss, (SEK m)H1-15
Underlying One-offH1
2014% vs.
Underlying
Total Operating income 23,598 -902 22,696 21,520 10whereof NII 9,660 -82 9,578 9,761 -1whereof NFI 2,841 -820 2,021 1,924 48
Total Operating expenses -11,164 -11,164 -10,857 3Profit before credit losses 12,434 -902 11,532 10,663 17Net credit losses etc. -490 -490 -557 -12
Operating profit 11,944 -902 11,042 10,106 18
H1-15 Reported
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Financial summary
Key figures Underlying H1 2015 Rep H1 2015 H1 2014
Return on Equity, % 14.2 12.9 13.1
Cost /income ratio 0.47 0.49 0.50
Earnings per share, SEK 4.33 3.92 3.67
CET1 ratio B3, % 17.2 16.0
Leverage ratio B3, % 4.4 4.0
Credit loss level, % 0.06 0.08
Net interest income development SEK bn, excluding one-off
5
Net interest income Jan-Jun 2015 vs. Jan-Jun 2014
Net interest income type Q2 2013 – Q2 2015
3.6 4.0 4.4
Q2-13 Q2-14 Q2-15
0.6 0.7
0.1
Q2-13 Q2-14 Q2-15
0.5 0.2 0.2
Q2-13 Q2-14 Q2-15
Deposits
Funding & other
Lending
9.8 9.7
Jan-Jun '14 Jan-Jun'15
-1%
Net fee and commission income development SEK bn
6
Net fee and commissions Jan-Jun 2015 vs. Jan-Jun 2014
Gross fee and commissions by income type Q2 2013 – Q2 2015
Custody and mutual funds
Payments, cards, lending, deposits & guarantees
Advisory, secondary markets and derivatives
0.8 1.3
2.0
Q2-13 Q2-14 Q2-15
1.7 1.8 2.2
Q2-13 Q2-14 Q2-15
2.5 2.6 2.5
Q2-13 Q2-14 Q2-15
+14% 7.9
9.1
Jan-Jun '14 Jan-Jun '15
1.1 0.8
1.2 1.1 0.8
0.7 0.3
1.3
1.6
Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15
Net financial income development SEK bn, excluding one-off
7
NFI and total Markets result Q1 2013 – Q1 2015 Net financial income Jan-Jun 2015 vs. Jan-Jun 2014
Net financial income development Q2 2013 – Q2 2015
Increased volatility in the quarter*
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12
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16
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20
22
24
26
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15
* (VIX S&P 500 volatility)
+48%
1.9
2.8
Jan-Jun '14 Jan-Jun '15
Average quarterly income (SEK bn)
9.2 9.4 9.8 10.4 11.0 11.8
Avg 2010 Avg 2011 Avg 2012 Avg 2013 Avg 2014 Jan-Jun2015
Average quarterly expenses (SEK bn)
5.8 5.9 5.7 5.6 5.5 5.6
Avg 2010 Avg 2011 Avg 2012 Avg 2013 Avg 2014 Jan-Jun2015
Average quarterly profit before credit losses (SEK bn)
Notes: Excluding one-offs (restructuring in 2010, bond buy-back and IT impairment in 2012, sale of MasterCard shares and Euroline in 2014, Swiss withholding tax in 2015) Estimated IAS 19 costs in 2010
3.4 3.5 4.1 4.8 5.5 6.2
Avg 2010 Avg 2011 Avg 2012 Avg 2013 Avg 2014 Jan-Jun 2015
Operating leverage excluding one-offs
8
5.7
3.1
1.5 1.2
0.7
Divisional performance Excluding one-off Operating profit Jan-Jun 2015 vs. Jan-Jun 2014 (SEK bn)
9
RoBE 14.1% (14.3) 14.0% (21.0) 23.1% (17.7) 24.1% (22.1) 15.3%* (15.5)
Business Equity
(SEK bn) 61.9 (51.7) 34.3 (24.4) 9.8 (8.7) 8.4 (8.2) 8.2 (9.2)
H1 2015
H1 2014
Merchant Banking Retail Banking Wealth Life Baltic
*RoBE excl RHC in Baltic Division is 18.9%
Client segments affected by central bank activities
Higher corporate Nordic IPO activity… (Deal value, Jan – Jun 2015, EUR m)
693
626
594
444
439
SEB
Peer 1
Peer 2
Peer 3
Peer 4
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
SWE 10y SWE 5y
0
200
400
600
800
1,000
1,200
Dec'09
Jun'10
Dec'10
Jun'11
Dec'11
Jun'12
Dec'12
Jun'13
Dec'13
Jun'14
Dec'14
Jun'15
…and Institutional demand for risk mgmt (Swap interest rates, Bloomberg)
Corporate credit portfolio (SEK bn)
10
Investments in digital solutions
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Innovation Lab EPICENTER
The traditional role of a bank has evolved post-Lehman
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US Treasury volumes vs. dealer inventory Indexed to 100 in 2001
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100
150
200
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300
350
400
450
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
US Treasuries outstanding
US Dealer inventory
Source: DB Research, SIFMA, NY Fed, US Treasury
US corporate bond volumes vs. dealer inventory Indexed to 100 in 2001
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100
200
300
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500
600
700
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
US dealer inventory
US Corp. Bonds outstanding
Continued resilience and flexibility
13
Net credit loss level 0.06%
NPL coverage ratio 58%
CET1 17.2%
LCR 123%
Liquidity resources ~25%
Ass
et Q
ualit
y Li
quid
ity
Cap
ital
RoE 12.9% RoE 14.2%(excl one-off)
Going forward
14
Continued disciplined execution
Resilience and long-term perspective in challenging economic climate
Focus on customer relationships
